Asian Agri aims to form partnerships with independent smallholders to manage an additional 9,000 ha of palm oil plantation land in Indonesia by this year, reported Bisnis Indonesia on its website.
By achieving this target, Asian Agri will fulfill its One to One Commitment of partnering with smallholders to manage a total land area of 100,000 ha, which is equal to the size of the company’s own plantation area.
At present, Asian Agri’s partnership with plasma farmers covers a land area of 60,000 ha while its partnership with independent farmers covers a land area of 31,000 ha (totaling 91,000 ha of land).
Besides aiming to improve the welfare of palm oil farmers, Asian Agri’s One to One Commitment program - which has been running since 2012 - is also intended to maintain a palm oil supply chain which involves independent farmers.
Meanwhile, farmers who are involved in the partnership will be able to capitalize on it, as well as obtain palm oil standard certifications via the collaboration.
The program is not only economically beneficial, but also very environmentally beneficial, as it eliminates the need for increased land usage, therefore contributing overall to increased sustainability.
Fadhil Hasan, Asian Agri Director of Corporate Affairs, said that the potential to increase production of the farmers’ plantations is feasible, if managed properly.
“Asian Agri, through our One to One Partnership Commitment, will strive to share the success that has been achieved by our plasma farmer partners, so that more independent farmers will be interested to join us in fostering sustainable national palm oil plantation management, as well as the overall success of palm oil farmers in Indonesia,” said Fadhil.